Microsoft losses due to Bing rise last quarter
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Microsoft losses due to Bing rise last quarter

Tuesday, 27 April 2010, 09:39 Hrs   |    9 Comments
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Microsoft losses due to Bing rise last quarter
Bangalore: Though Microsoft posted strong results for the third quarter of the 2010 fiscal year, the software giant continues to suffer heavy losses in its Online Services Division that manages Bing. The losses reached $713 million by March, higher than last year's loss of $411 million, reports TechWorld.

During Microsoft's fiscal third quarter, which ended March 31, the Online Services Division reported a 12 percent increase in revenue, which rose to $566 million on the back of higher advertising revenue. That was not enough to offset a surge in operating expenses during the period. OSD includes Microsoft's online advertising business, the Bing search engine, and its various MSN websites.

In a discussion of OSD's results, Microsoft blamed the increase in operating expenses on several factors. It said sales and general administration expenses increased by $145 million, largely due to "transition expenses" from the search deal struck with Yahoo, which handles some advertising sales for Microsoft while Microsoft provides for Yahoo's websites.

Another source of Microsoft's higher costs was research and development, which increased 33 percent during the fiscal third quarter to $77 million due to higher headcount and payments to Yahoo for expenses incurred before it moved to Microsoft's search platform. Sales and marketing expenses were also higher, up 30 percent to $69 million due to increased promotional activities.

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Reader's comments(9)
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Posted by:side effects of green tea weight loss pills - 17 Jun, 2010
2: U Silicon India , Wake up
-------------------------------------------------
U are losing users, due to these things.
What does this Title mean...?
"Microsoft losses due to Bing rise last quarter"
-->lose to Microsoft due to rise in Bing?
What a Pity, U guys better learn English.
Posted by:silicon - 28 Apr, 2010
3:
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side effects of green tea weight loss pills Replied to: silicon - 17 Jun, 2010
4:
No, silicon, you should read it as "Microsoft losses, due to Bing, rise last quarter".
Venkat Replied to: silicon - 28 Apr, 2010
5:
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side effects of green tea weight loss pills Replied to: Venkat - 17 Jun, 2010
6: I don't believe this.

Microsoft copies its own CDs at maybe $0.1 per CD, sells them at $100-300.
And finally, it makes losses due to one department!
Posted by:Kaushik - 27 Apr, 2010
7:
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side effects of green tea weight loss pills Replied to: Kaushik - 17 Jun, 2010
8: It is true that increase in operating expenses can be one of the major reason.
Posted by:John - 27 Apr, 2010
9:
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side effects of green tea weight loss pills Replied to: John - 17 Jun, 2010
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